There’s no need for lower corporate taxes

U.S. corporate taxes are actually lower than many other countries’ and a tax break is unnecessary to help stay competitive, says Robert Reich for nationofchange.org. Companies, he argues, have no incentive to expand unless the market changes.

Reich’s article is spot on. Most corporations are multinational, including banks, and they have the best accountants and lawyers and will always find a way to move things around so that they will get the best combination of business/investments and taxes. Even now if these corporations wanted to make investments in the U.S. they could find multiple ways of doing that without the use of their money overseas. These corporations in effect bribed U.S. legislatures to provide them with HUGE tax breaks to shut down factories and other businesses here and to invest and create jobs overseas. I guess you can’t blame them for trying to scam U.S. citizens to get out of paying their fair share of taxes, but that doesn’t mean we have to swallow that Kool-Aid.

Sunday, August 25 – TU Editorial:
“If GlobalFoundries builds the plant – a move that seems increasingly likely – it will dramatically bolster the company’s presence here, which so far has brought an investment of $8.1 billion and about 3,000 jobs. That’s a solid return on the state’s package of $1.4 billion in cash and tax breaks to lure GlobalFoundries.”